Our Rent Advantage service(s) is designed to help you build your credit history by reporting your rent payments to Equifax Canada. Here’s how it works and the benefits it offers:
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Payment History: Your payment history is your track record of how successful you’ve been at making credit payments, and is the single biggest factor that makes up your credit score. By making your rent payments on time and having them reported to Equifax Canada, you’re building a solid payment history, signaling to lenders that you can be trusted with credit. Making on-time payments makes up ~35% of your overall credit score.
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Credit Mix: The types of credit or tradelines you have on your credit report also determine ~10% of your overall score. If you find the type of credit you hold is mainly credit cards or loans, having Rent Advantage on your credit report can help improve your credit variety.
- Credit History: Reporting rent payments can also contribute to the length of your credit history, which makes up about 15% of your score. Longer credit histories are viewed favorably by lenders, as they demonstrate responsible management over time.
By utilizing Rent Advantage and its services, you can effectively leverage your regular rent payments to build a solid credit history, improve your payment record, and enhance your overall credit profile without needing landlord involvement. This service presents a valuable opportunity for renters looking to strengthen their financial standing and access better borrowing options in the future.